Weekly Financial Tips
Being financially independent is more than earning an income for you. It requires great amount of financial intelligence and timely decision making for better financial future.
It’s not about you only; your decisions today can affect you and your family for few years to decades. It is really important to make the right financial decisions today to take control of your financial future and also leave a financial independence for your family as a legacy.
Wall Street’s Big 5.
WallStreet’s Big 5 will be bringing every week 5 financial tips to create financial awareness, provide an opportunity to learn finances and earn a financially independent living.
Five financial tips to take control of your financial future:
1. Prioritize your needs and categorized your wantsBelieve it or not; personal finance is all about “needs”. It is important to differentiate your needs and wants. Put your need first which is your necessity today and defer your wants for a future time as a luxury.
2. Save before you spend the next dollarIt is wise to save a portion of your pay cheque before you plan to spend your next dollar; In fact you have worked many hours last week to earn this pay cheque. It’s a good idea to save at least 20 cents of every dollar you earn. You’re right pay yourself a 20% tax on your each pay cheque.
3. Defer spending on credit cards rather deferring a payment for purchaseThe sooner you learn the cost of borrowing, the easier it is to avoid the unnecessary debt. Although you have the ability to purchase on your credit card in a minute, it’s better to wait until you have really saved up the money for your purchase. Do not make your habit to purchase on credit cards; it might take years to pay completely for those items because there is an interest payment that you owe before you pay anything else.
4. Keep track of your budgetBe accountable for your money and keep a daily record of it. Creating a need based budget is essential to learn your spending behavior and to know where exactly your money goes. It is only possible when you are spending in your budget.
5. Plan your retirement nowIt is never too early to think about the early retirement. Since you are so busy to growing your career to getting married, and raising a family, there is a fair chance you are not planning your long term needs. The earlier you plan your retirement the better you will have it. Early planning doesn’t mean an early retirement; an early retirement requires you to stop working before your official age of retirement. You will be very lucky if you will retire at age 55. In Canada the official age of retirement is 65 and subject to increase or decrease by government policies. Create a retirement fund as soon as possible and plan now for future liabilities when you won’t be working. Open your retirement savings account today and top up with a 3 hours’ worth of your wage; it may not enough to buy you a Rolls Royce but it might help you to pay for your property and estate taxes when there will be no income taxes for you.
If any of the above is a big concern for you and you need free guidance. Call us at 905-840-2015.
Posted by WallStreetCanada | Oct 04 2016